Switch and go – insurance switching up dramatically

  • 1.6 million* more policies switched compared to last quarter
  • MoneyExpert.com Switching Index Q3 results launched

Car and home insurance customers have dumped over 9.2 million uncompetitive policies in the past six months as the insurance market sees a sharp increase in switching, according to MoneyExpert.com*.

The independent financial comparison website says some 1.6 million more car and home insurance products have been switched compared to last quarter.

The Q3 results of MoneyExpert.com’s authoritative Switching Index show that 15 per cent of adults have swapped motor insurance provider and 10 per cent have changed their home insurance policy in the six months to October. That equates to 6.88 million and 2.39 million policies changing hands respectively.

The new figures from MoneyExpert.com reveal that in total around half the population ditched some 37.5 million products and services in favour of better deals in the past six months, or over 205,000 swaps every day.

And with insurance switching up dramatically, MoneyExpert.com says consumers are finally becoming savvy to unfair deals and demanding more competitive pricing from providers.

Sean Gardner, Chief Executive of MoneyExpert.com, said: "Insurance has been incredibly competitive for a long time now. Just turn on your television and you’ll see scores of advertisements all claiming to get you the best deal.

"And with online price comparison becoming mainstream for millions of people, it’s even more likely that people will be happy to chop and change providers in search of the best deal."

The MoneyExpert.com Switching Index also shows that electricity bill switching is up by 2 percentage points in the past six months. 15 per cent of UK adults claim to have swapped provider over that period – around 3.59 million households.

Sean Gardner added: "Last quarter the effects of higher interest rates and a less than flourishing financial marketplace led to a widespread reduction in switching. We were all battening down the hatches.

"But three months on and it seems consumers are regaining confidence and are switching again – everyone will want to save themselves some cash before the tough festive period begins.

"The good news is there are plenty of excellent offers out there and many product sectors are incredibly competitive – insurance being a prime example. It will almost certainly be the case that everyone can save money by switching and we would urge consumers to continue to seek out the best deals."

The MoneyExpert.com Switching Index monitors everything from gas and electricity providers to mobile phones, credit cards, broadband and bank account customers. In total around 37.5 million products and services were discarded by consumers shopping around.

MoneyExpert.com Switching Index – HOUSEHOLD PRODUCTS 2007 Q3

Type of provider / supplier % of households that have switched in past six months % change on Q2 results (approx) No. of households who have switched in past 6 months (approx) Change on Q2 results (approx)
Electricity 15% +2% 3,596,000 +474,000
Gas 13% +1% 3,117,000 +234,000
Broadband 11% No change 2,637,000 No change
Home Insurance 10% +3% 2,398,000 +716,000
Landline 8% -1% 1,918,000 -244,000

MoneyExpert.com Switching Index -PERSONAL PRODUCTS 2007 Q3

Type of provider / supplier % of people that have switched in past six months % change on Q2 results (approx) No. of people who have switched in past 6 months (approx) Change on Q2 results (approx)
Car Insurance 15% +2% 6,881,000 +906,000
Credit Card 12% No Change 5,505,000 No Change
Mobile Phone 8% No Change 3,670,000 No Change
Savings Account 6% +1% 2,752,000 +454,000
Current Account 5% +1% 2,294,000 +455,000
Mortgage 4% +1% 1,835,000 +456,000
Personal Loan 2% +1% 917,000 +458,000

We aadvise that regularly reviewing providers for a range of services is good practice but remember that it might not always make financial sense to switch.

Click through to MoneyExpert for money saving hints and tips

– Ends –
Notes to Editors
* Switching Index table and figures – Online Research carried out by YouGov who interviewed 2,051 GB adults (18+) between 3rd – 5th October 2007. Grossed up using ONS statistics on no. of households and adults in Great Britain.

Previous switching index research conducted by YouGov between 6th – 9th July 2007

Notes

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